Maruti Suzuki, the Indian subsidiary of the Suzuki Motor Corporation (SMC), posted a revenue growth of 10 percent against Suzuki’s loss of 25 percent in global sales. SMC’s North American operations reported a decline of 55 percent.
For the first time since Maruti Udyog Ltd. was taken over by Suzuki Motors Corporation, the Indian subsidiary has zoomed past U.S. revenues for Suzuki.
According to audited financial results of Maruti, the income for the fiscal year 2008-09 stood at Rs 23,085 Crore as against the revenue of Rs 10,000-Rs 11,000 Crore generated from Suzuki’s North American operations. In the fiscal year 2007-08, Maruti Suzuki had reported an income of Rs 18,000 Crore.
Talking about the company’s performance, Chairman of Maruti Suzuki India Mr. R. C. Bhargava said, “Last year we produced more cars than any of the previous years. Maruti remained insulated from the happenings in US market and posted a higher growth rate. The trend is likely to continue in this year too as there have been signs of revival of demand in the current quarter in the Indian market. Hopefully we can carry forward the growth in revenue as we do not expect any increase in tax rates for the automobile sector”.
Suzuki holds over 54 percent stake in Maruti Suzuki India, which is one of the most profitable companies of the Japanese car manufacturer. Maruti’s domestic market share stood at 62 percent followed by Hyundai Motors and Tata Motors.
In order to cater to domestic and international markets, Maruti Suzuki has decided to invest Rs 1,800 Crore in the current financial year and increase annual production capacity to 10 Lakh cars from its existing capacity of 9 Lakh units.
Small cars will lead India to glory as Suzuki plans to move a major portion of its small car manufacturing activities here in order to reduce costs. If this is achieved, Suzuki can focus on bigger cars and alternative fuel options. India will continue to remain the focal point of Suzuki’s global strategy.